Howdy Neighbors!

The U.S. agricultural sector is grappling with a severe cash flow problem despite significant recent federal aid, according to Dr. Bart Fischer of the Texas A&M Agricultural & Food Policy Center. In a discussion with Farm Director KC Sheperd at the Ag Outlook Forum, Fischer detailed the reasons for the lingering distress and the policy implications for producers.

Fischer explained that even with the substantial American Relief Act and the “One Big Beautiful Bill” injecting funds into agriculture, the industry is still in a tough spot.

Magnitude of Loss: The assistance has been overwhelmed by the magnitude of the financial losses. Fischer noted that the “cost of production over the last four years just absolutely exploded” and has been “magnified” by drought and other weather pressures. The Cash Flow Problem: The core issue is timing. Many of the farm safety net improvements made in the “One Big Beautiful Bill” won’t take effect until October of next year (2026). This leaves farmers in the fall of 2025 largely with a “cash flow problem,” creating a situation similar to the previous year and highlighting a need for a “bridge right now to try to get to the new crop year.”

In an interview with Farm Director KC Sheperd at the Ag Outlook Forum, Harrison Pittman, Director of the National Ag Law Center, discussed the financial uncertainty facing agricultural producers, focusing on federal payment systems, depleted funding, and key legal challenges.

A significant immediate concern is the funding for farm safety net and assistance programs, much of which is financed through the Commodity Credit Corporation (CCC).

ECAP Distribution Update: The remaining $2 billion of the Emergency Commodity Assistance Program (ECAP) funding Was released on Friday. This follows the initial payments that have already been sent out. The Commodity Credit Corporation (CCC): The CCC is a federally chartered corporation created during the Great Depression era. It serves as the primary funding source for major agricultural programs, including conservation and the farm safety net (like ARC and PLC).

Senior Farm and Ranch Broadcaster Ron Hays reports on the opening address offered by U.S. Ag Secretary Brooke Rollins at the Ag Outlook Forum, co-hosted by the Agribusiness Council of Kansas City and Agri-Pulse. Her wide ranging speech concluded with a focus on beef cattle industry issues- including the critical threat posed by the New World Screwworm (NWS) and the administration’s ambitious plans to revitalize the struggling U.S. beef industry. Oklahoma Farm Report’s Farm and Ranch Director KC Sheperd was on hand on Thursday for the Ag Outlook Forum, which covered a variety of policy issues impacting all of agriculture.

Rollins minced no words regarding the most recent NWS case announced this past Sunday, expressing profound dissatisfaction with the unfolding situation. Her strong remarks followed the discovery of a new NWS case just 70 miles south of Laredo, Texas, where USDA personnel ‘didn’t like what they found’ upon initial assessment.

“This is unacceptable,” Secretary Rollins declared, directly implicating Mexico in the resurgence. She stated that Mexico has failed to enforce proper cattle movement controls in infected regions and is not diligently tending to fly traps daily as promised, hindering real-time detection capabilities. “Mexico must fully implement the agreed-upon protocols, must expand surveillance immediately, and lock down cattle movement in infected zones. Anything less puts both of our nations’ herds and our food supply at grave risk.”

The U.S. Department of Agriculture (USDA) is issuing a second Emergency Commodity Assistance Program (ECAP) payment to eligible producers for the 2024 crop year. Of the authorized $10 billion in ECAP assistance, USDA’s Farm Service Agency (FSA) has already provided over $8 billion in payments to eligible producers to mitigate the impacts of increased input costs and falling commodity prices. U.S. Secretary of Agriculture Brooke Rollins made the announcement yesterday at the Ag Outlook Forum in Kansas City. 

“Initial ECAP payments were factored by 85% to ensure that total program payments did not exceed $10 billion in available funding. Since additional funds remain, FSA is issuing a second payment,” said Deputy Under Secretary for Farm Production and Conservation Brooke Appleton. “As producers continue to face market volatility, these payments along with the entire suite of supplemental disaster assistance programs, will help producers navigate market uncertainty, pay down debt for the 2024 crop year, and secure financing for the next crop year.” 

Payments will automatically be made to eligible producers with approved ECAP applications who received an initial payment. Any application approved after Sept. 25, 2025, will receive one lump sum payment. Authorized by the American Relief Act, 2025, these economic relief payments are based on planted and prevented planted crop acres for eligible commodities for the 2024 crop year. 

Though they are 12,000 miles apart, outer space and global agriculture are closely intertwined. 

Just like on Earth, space experiences destructive storms, putting vital GPS systems in jeopardy. Not only is farming impacted by downed GPS satellites, but construction, drilling and mining are also affected. Many high-tech heavy machineries rely heavily on GPS systems, and when they’re affected, productivity takes a substantial hit. A Kansas State University professor is playing an important role in keeping satellites running and shaping our nation’s preparedness against space weather events.

Terry Griffin, professor of agricultural economics and a precision agriculture economist, has been appointed to the second cohort of the Space Weather Advisory Group, a crucial advisory body for the White House Subcommittee on Space Weather Operations, Research and Mitigation.

In a recent report titled “The Harvest Economy,” the National Grain and Feed Association (NGFA) outlined the significant economic contributions of the grain and feed industry. According to NGFA President and CEO Mike Seyfert, the study quantifies the industry’s essential role in the U.S. economy, showing it generates over $400 billion in economic output and supports more than 1.16 million jobs.

The report found that the industry’s economic impact extends far beyond its direct workforce, creating “hundreds of thousands of additional jobs” in supporting industries, from “transportation to equipment professional services”. All told, the industry contributes nearly $33 billion a year in taxes paid to federal, state, and local governments.

Seyfert emphasized that this economic benefit touches “every state and every congressional district”. He cited Iowa as a state where the industry’s impact tops $43 billion, but noted that even in smaller states, “1000s of jobs depend on Grain and Feed facilities”.

U.S. Wheat Associates (USW) commends the Agriculture Secretary Brooke Rollins and the U.S. Department of Agriculture (USDA) for the announcement of 417,000 metric tons of commodity awards through the agency’s Food for Progress and McGovern-Dole Food for Education programs.

The awards include 204,000 metric tons (7.5 million bushels) of U.S. wheat destined for the African continent.   “We are beyond pleased to see today’s announcement from USDA,” said Dalton Henry, USW vice president of policy and communications. “America’s wheat farmers grow the most reliable supply of high-quality wheat in the world. Programs like Food for Progress offer an opportunity to introduce our product into markets, provide assistance to those in need and support USW’s customers of tomorrow.”  

Under the Food for Progress program, donations of wheat are monetized, which refers to the sale of in-kind donations of U.S. food commodities in recipient countries for local currency. Through monetization, the United States provides food commodities, like wheat, to a cooperating sponsor, a recipient government or a non-governmental organization. 

The American Farmers & Ranchers (AFR) Political Action Committee has endorsed Republican candidate Dillon Travis, Maramec, for State House District 35. The Republican primary for the vacant House seat will be held Dec. 9, 2025.

Travis is a sixth-generation Oklahoman, a lifelong farmer and a rural business owner. He currently serves farmers across Oklahoma through Southern Plains AG-CO, his regional agricultural supply company. Travis also owns a large cattle and hay operation.

Travis’ campaign priorities align closely with the needs of House District 35, a predominantly rural district. His priorities include fixing rural roads, protecting rural schools, combating the rural drug epidemic, supporting Oklahoma agriculture, and protecting the rights of Oklahoma families.

Checking the Markets...

This past week- Southern live cattle traded at mostly $237, which is $3.00 lower than last week's weighted average. That $237 was reported by TCFA for feedlots in Texas, Oklahoma and New Mexico. October live cattle closed $0.25 lower at $231.80, December live cattle closed steady at $234.30 and February live cattle closed $0.45 higher at $23.50.

The downward trajectory in Choice Boxed Beef prices continued Friday, September 26th. Choice was down 54 cents to $371.43, the 17th straight closing session that was lower than the day before. Select beef was $1.01 lower at $352.44. The choice- select spread was $18.99 on a light volume of 95 loads.

Oklahoma National Stockyards had 4,303 head on the yards at 9 PM last night. The sale will start at 8:00 am. They are expecting to start with 4,300 to 4,800. 

OKC West is our Market Links Sponsor- they sell cattle three days a week- Cows on Mondays, Stockers on Tuesday and Feeders on Wednesday- Call 405-262-8800 to learn more.

Click here for our Markets Page on OklahomaFarmReport.Com- there you will find many of the reports we have linked on the right hand column found on the previous format of our email.

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